How to use the monthly compound interest calculator
- Enter the starting amount. The page starts with ₹2,50,000.
- Enter the interest rate per year. The page starts with 7 percent.
- Enter the number of years and an optional monthly addition. Compounding is fixed at monthly.
- Read the future value and the year-by-year table.
About this scenario
Many savings products, deposits and loans add interest every month. When you search for monthly compounding you want to see the effect of twelve small additions a year instead of one big one. Here compounding is fixed at monthly, and the figures are estimates only.
Worked example
The page opens with ₹2,50,000 at 7 percent a year for 15 years. Compounded monthly it grows to ₹7,12,237, earning ₹4,62,237. The effective annual rate is 7.229 percent, a little above the stated 7.
₹2,50,000 at 7 percent compounded monthly, for different periods, with and without ₹5,000 added each month:
| Years | No additions | With ₹5,000 a month |
|---|---|---|
| 5 | ₹3,54,406 | ₹7,12,371 |
| 10 | ₹5,02,415 | ₹13,67,839 |
| 15 | ₹7,12,237 | ₹22,97,048 |
| 20 | ₹10,09,685 | ₹36,14,318 |
What to notice
Compounding yearly instead of monthly at the same 7 percent gives ₹6,89,758, which is ₹22,479 less over 15 years. Adding ₹5,000 every month on top of the deposit lifts the 15 year result to ₹22,97,048. The more often interest is added, the higher the result, but the gap is small compared with the effect of time and monthly additions.
Tips
- Check whether your product really compounds monthly. Many pay out quarterly or yearly.
- The effective annual rate lets you compare products that compound at different frequencies.
- Inflation and tax reduce what you keep. The figures here are before both.
- See also: compound interest calculator, sip calculator for 10 years, sip calculator, emi calculator for personal loan.
Estimates only, not financial advice. Everything runs in your browser. Nothing you type is uploaded.